Real Estate Scene in Mumbai

The Current Real Estate Scene in Mumbai. Is the Real Estate Market Collapsing?

According to the World Investment Report, India has been ranked in the fourth position in developing Asia for inflows. This report has been generated by the United Nations Conference on Trade and Development, in the year 2016. Mumbai plays an important role in contributing to the growth of the Indian real estate market. The 2011 real estate bubble created a stir in the economic growth of the country. However, the market got back well quite earlier than expected. Now, analyzing the current scenario, real estate observers are wondering as to whether the market situation will get adverse again. State of Mumbai Post-Demonetization: After the Government declared its demonetization policy by the end of 2016, the real estate market in Mumbai and Thane took a severe hit. The dealers felt tied up as they were not able to get profitable deals. There was a point of stagnation in the real estate market. The inability among the real estate traders to strike even a single deal went on for months. The main reason behind was that people found it hard to liquidate cash. The interest rates very fluctuating and it had an impact on the price levels as well. However, developers with big brand names were able to manage this crisis. Real estate became a buyers’ market. The nature of all real estate market clients is that they wait and watch the situation so that they can cautiously invest and stay assured that they have invested in the right place. The case was the same as far as the stock markets were concerned. Both the primary and secondary markets saw no lift for a couple of months after demonetization. GST – Will Mumbai face a Real Estate bubble? The unfavorable issues kept hitting the Indian markets one after the other. Even before the markets could stabilize itself after the cash crunch, the implementation GST made the real estate market stumble. This time the impact was much larger than what happened with demonetization. The concept of ‘One tax’ was entirely new. People needed time to understand that the underlying principle is still the same and there is nothing to worry. However, there are still doubts regarding how GST will work and will it serve the purpose. Until these doubts get out of the way, high-level property investments are a distant dream. The implementation of GST, and demonetization did take a toll in the Indian Real estate market, and now the market is in reset mode. This situation will soon resolve. However, we will have to wait for a while to see it happen.